Synnex preliminary consolidated financial results were as follows:
Synnex business operating performance achieved outstanding result in 2018. Synnex consolidated full-year 2018 sales revenue was NT$ 385.5bn, with 6% growth, breaking historical high record in consecutive three years. Distribution BU broke the historical new record as well, and reached revenue NT$ 287.3bn, with 10% growth. IC component business revenue was NT$ 98.2bn, the second highest record in history. Full-year 2018 group global revenue including joint venture exceeded US$ 40bn level and achieved US$ 41.0bn, remaining the global second largest channel service distributor.
Synnex distribution BU all achieved stunning results, especially the commercial markets including data center, internet security, cloud and technical service. In recent years, the revenue scale boosted with annual increase of NT$ 10bn, and significantly grew with around 20% in 2018, bringing the robust growth engine in distribution BU revenue. Another growth motivation was attributable to the aggressive development in eSports and smart devices new fields in 2018, with double digit growth, nearly contributing 5% of total revenue. As for other core business, for example, retail system, tablet, computer component, smart phone, peripheral and supplies grew 5%~25%, with superior performance than the market due to the expansion in market share.
From geographic aspect, all countries grew in 2018. Among them, Australia, New Zealand, Indonesia and Hong Kong broke historical high level with double digit annual growth. China and Taiwan both came to the new high record from the past 6 years, respectively with 14% and 6% growth.
As for IC component business, Synnex kept expanding new industrial application, including industrial control/AIoT, automobile device, smart consumer electronic and internet/commercial fields, totaled to half revenue contribution, bringing IC component revenue grew with 10% YOY in the first half year. However, due to the impact of Intel’s CPU shortage and trade war, causing the disturbance in manufacturing schedule, customers became hesitant toward order willing in the second half of 2018. IC component revenue dropped 5% from the highest record in prior year, but still remained the second highest record.
Looking forward to 2019, despite of numerous disturbance factors in the market, still expecting the government will enlarge domestic demand to deal with the slowdown from foreign trade. It will be the positive effect to Synnex, since the majority revenue come from domestic demand market. Furthermore, enterprises will continue to invest in digital transformation and enhancement of internet security. The official launch of 5G could spur the system establishment, equipment update and the demand of replacement. Synnex already stably remain the second largest global channel service distributor, and continuously develop in new products, market and channels to expect to create magnet effect, continuously expanding the market share in all countries. Synnex expect to enjoy outstanding performance in 2019 superior than market performance.
